Fed resumes policy meeting with stimulus taper in focus
Washington (AFP) - The Federal Reserve resumed a two-day policy meeting Wednesday focused on whether the economy is healthy enough to weather a cutback in the central bank's massive stimulus.
The Federal Open Market Committee resumed discussions at 8:30 am (1330 GMT), a Fed spokesman said.
At 2:00 pm (1900 GMT), the FOMC will announce its policy statement and release updated forecasts for growth, inflation and employment in the world's largest economy.
Half an hour later, Fed Chairman Ben Bernanke will hold a news conference.
Analysts are sharply divided over whether the Fed will announce the start of tapering its $85 billion a month asset-purchase program, launched a year ago to support growth and hold down long-term interest rates.
A slight majority predicts the Fed will wait until next year to allow for more information on the economy's recovery from the severe 2008-2009 recession.
The Fed has held its key interest rate at a rock-bottom low between zero and 0.25 percent since December 2008, and Bernanke has suggested it may remain near zero for some time after the asset purchases end.
